How we lost lakhs taking 99 Pancakes franchise and you should save yours.
First of all when the first company outlet is running in loss, it should avoid giving franchise to others. That is what 99 pancakes refrained from doing. 99 pancakes charged a 5 lakh rupee franchise fees and deposit of 2 lakh to the business they themselves were making loss which i realized later. I took 99 pancake franchise from Franchise India whose representative coned me saying that even the bad location 99 pancake franchisees sale in Mumbai is above 8 lakh. Later i came to know its not even half of that and in most cases not even quarter of that. Now comes the bad part; The equipment 99 pancakes sold, they didn’t provide us the bill of it and took the lump sum amount which was way more than the added up cost of market rate of such equipment. Even before knowing the sale, they dumped the initial raw material in such an amount that it was difficult to finish it even in a year and didn’t take back remaining large amount of packaging material when we closed our 99 pancake franchise. They dumped and charged for many material in large quantity which had no use like stickers of 99 pancakes that they used earlier for putting on boxes that they stopped using because of already printed containers. Coming to the raw material, many material were charged more than the market rate like wooden forks were charged at 130+tax per 100pcs while it was available at 75+tax per 100pcs. Waffle and Pancake Premix is charged at upward rate than that of market. On top of expensive raw material, 99 pancakes charged the royalty of 7 percent on sales. Our 99 pancake franchise was doing an average sales of 1 lakh 40 thousand in the food court of best mall in Surat which also houses Inox just besides our store. We shut the store in mid feb in less than 2 years to which they sent us the closing agreement and deposit received slip and sent us threatening email to sign the agreement and slip or they will not refund the deposit. We signed and sent back in hope of receiving the deposit. They stopped receiving calls and we haven’t received our deposit. We invested more than 15 lakh and lost all in 99 pancakes franchise. 99 pancakes made money from us but we didn’t. 99 pancakes is run by Euphoria Hospitality pvt ltd which also run catering and bakery with the name of Happiness Deli which also has been listed in franchise. Don’t be the victim of franchise fraud, Many are there only to make them rich but not the franchisees.